Start House-Hunting: Why Now Is the Perfect Time
Recent trends in the housing market indicate that now is an ideal time for prospective buyers to start house-hunting. Prices for residential real estate have seen a decline, marking six consecutive months of decreases. This shift is driven by a combination of seasonal trends and reduced demand from buyers.
Current Housing Market Trends
According to data from Zillow, home prices typically peak in July, followed by a downward trend. The chief economist at Zillow, Mischa Fisher, noted that buyer demand remains weak. Factors such as labor market uncertainty and elevated mortgage rates are influencing this behavior.
Mortgage Rates
The average mortgage rate currently exceeds 6%. This rate is significantly higher than the approximately 3% rates seen during the pandemic. These rising rates are impacting buyers’ ability to afford homes.
Home Price Insights
In January, Zillow reported a 0.4% decrease in home prices from December, although values remain 0.2% higher than a year ago. The typical U.S. home is valued at around $358,968. Zillow anticipates that 20 major housing markets will be more affordable this year than they have been since 2020.
Increased Inventory for Buyers
January brought good news for those looking to purchase a home, as more than 1.2 million properties were listed for sale. This figure represents a 6% increase compared to the same month in the previous year. According to Fisher, this rise in inventory is advantageous for buyers.
- More options available for prospective homeowners
- Increased affordability opportunities
Future Predictions
In a related forecast, Realtor.com has predicted further price drops in 22 of the 100 largest cities across the United States. With these trends, now could be the perfect time for house-hunting.
In summary, the combination of falling home prices, increased inventory, and more affordable home-buying conditions makes it an opportune moment for prospective buyers to enter the market.
